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In trading, understanding support and resistance levels is essential for making informed decisions. Support refers to a price level where an asset tends to stop falling and start rebounding. This happens because buyers see the price as a good entry point, creating demand that stabilizes or increases the price. On the other hand, resistance is the opposite—it's a price level where an asset struggles to break through because sellers see it as an opportunity to take profits, creating supply that caps further price increases.

Spotting these levels on a chart can provide key insights into market behavior. When an asset price approaches support, traders might buy in anticipation of a bounce. Similarly, when the price nears resistance, selling or taking profits could be a strategy, expecting the price to fall back.

However, it's crucial to recognize that support and resistance are not absolute. Prices can break through these levels, leading to a new support or resistance being established. This is why traders often look for confirmation through volume, patterns, or other indicators. Consistently monitoring and adjusting to these levels can enhance trading strategies, allowing for better risk management and potential gains.#LowestCPI2021 #BinanceLaunchpoolTON #MarketDownturn #SahmRule #BlackRockETHOptions